A consumer in Canada is considering the cost of two similar food products

Product A
- made by a well-known transnational corporation
- less expensive due to economies of scale and outsourcing
- unknown environmental and worker safety standards

Product B
- made by small-scale farmers and producers - more expensive but more money goes to farmers and producers
- no pesticide use

This comparison is an example of

(1 point)

• the advantages of vertical integration.
• the benefits and costs of fair trade.
• the causes of lower GNI in developing nations.
• the costs of child labor.
• the benefits of market competition.

Explain which is correct

1 answer

The correct answer is:

• the benefits and costs of fair trade.

This is because the comparison between Product A and Product B highlights the trade-offs consumers may need to consider when purchasing products. Product A may be cheaper and more readily available due to economies of scale, but there are concerns about labor practices and environmental standards. On the other hand, Product B may be more expensive, but it supports small-scale farmers and producers and does not use pesticides. This dilemma illustrates the concept of fair trade, where consumers can choose to support more ethical and sustainable practices by paying a premium for certain products.